Anglo-Eastern Plantations PLC Interim Management Statement (6574F)
May 28 2013 - 4:00AM
UK Regulatory
TIDMAEP
RNS Number : 6574F
Anglo-Eastern Plantations PLC
28 May 2013
28 May 2013
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Interim Management Statement
Anglo-Eastern Plantations Plc and its subsidiaries, which owns,
operates and develops plantations in Indonesia and Malaysia,
amounting to some 126,000 hectares producing mainly palm oil and
some rubber of which approximately 59,400 hectares are planted,
today announces its Interim Management Statement in respect of the
period since 31 December 2012.
Operational and financial performance
For the first three months ended 31 March 2013, our own
production of fresh fruit bunches ("FFB") was 155,900mt, a
reduction of 2% compared to the same period in 2012 (3M12:
159,400mt). FFB bought-in was 66,200mt, which represents a decline
of 42% in comparison with the same period in 2012 (3M12:
113,200mt). Total Crude Palm Oil ("CPO") produced was 46,300mt, 14%
lower than the corresponding period in 2012 (3M12: 54,100mt) due
almost entirely to lower purchase of external FFB.
CPO CIF Rotterdam price averaged $845/mt for the first three
months to 31 March 2013. This represents a decrease of 24% from the
average of $1,107/mt recorded in the first quarter of 2012 but is
above the $835/mt being the price at the start of 2013.
The Group's balance sheet remains strong with the Company
continuing to achieve positive cash flow generation. The Company's
Long Term Development Loans totalled $25.0m as at 31 March 2013
(3M12: $3.2m). The increase was due to drawdown of loans to finance
plantation development activities.
Development
New planting by the Group for the first three months ended 31
March 2013 was 427 hectares (3M12: 558 hectares). As indicated in
the preliminary announcement on 30 April 2013, new plantings remain
behind schedule due to protracted negotiations over settlement of
land compensation with villagers and a delay in the issuance of
land release permit (Izin Pelepasan) for two plantations. However,
one of these plantations has now obtained the necessary permit in
April 2013 and shall proceed to prepare the land for planting.
The biogas and biomass project planned for a mill in North
Sumatera is expected to cost up to $4.5m. Production of the Dried
Long Fibres from the waste empty fruit bunch will start in the
fourth quarter of 2013. This project will utilize the mill waste to
produce saleable end products while mitigating significantly the
emission of biogas.
The earthworks for the mill in Kalimantan commenced in the
fourth quarter of 2012 while civil and mechanical works is expected
to begin in the third quarter of 2013. This mill is expected to be
completed in first quarter of 2015 with an initial capacity of 45mt
FFB/hr. The earthworks for a further mill in North Sumatera which
started in the first quarter of 2013 is expected to progress with
civil works in the fourth quarter of 2013. This mill is expected to
be completed by the second quarter of 2015 with a final capacity of
60mt FFB/hr.
Outlook
The CPO price closed at $850/mt in mid-May 2013, representing a
2% increase from $835/mt from the start of the year. Although the
CPO price remained under pressure during first quarter of 2013 due
to the continuing high levels of supply and slower growth in demand
from China and India, we anticipate that CPO price may improve
slightly in second quarter as palm oil enters its low production
cycle. But a weaker third quarter CPO price may be in store when a
projected record harvest of soybean crops enter the market.
Given that the price of commodities has remained generally
stable throughout this period, and the demand for the Group's
products remains strong, the Board is cautiously confident of
reporting a satisfactory profit level and cash flow for the
remainder of 2013.
For further enquiry, contact:
Anglo-Eastern Plantations Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Charles Stanley Securities
Russell Cook
Karri Vuori +44 (0)20 7149 6000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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